Article by Marilize Opperman, CFP®, Wealth Advisor
1. Be independent
If you are in a relationship, married, or single, each woman should have their own financial status/ portfolio. This independence creates confidence and a sense of ease that is essential to the well-being of each female. The most successful investors are either well informed or have a reputable Certified Financial Advisor (CFP®) to manage their portfolio on their behalf. Being a superwoman, mother, full-time worker, house executive, or all the above leads to insufficient time to manage your financial affairs; this leads to the modern-day woman neglecting one of the most important principles – being financially independent.
2. Be in control
How do you ensure that your expenses are less than your income (i.e., side-step debt)? It’s as simple as drafting a budget.
Tip: Have two columns for each entry – a projected cost column and an actual cost column. Complete the actual cost column at the end of each week to track your spending behaviour. Mastering the self-discipline to stick to your budget; will enhance your skills and probability of sticking to your desired lifestyle (e.g. fitness routine, eating habits, water consumption, etc.).
3. Pay yourself first
Make an active decision to save specifically for yourself. Not saving a part of your income today; means no salary at retirement (future). You are paying yourself now to receive an income later – the farmer sows the seed today to harvest the excellent crop later. Currently, you are receiving a salary for working. You will receive an income at retirement because you worked (which is only possible if you invested in yourself).
4. Save ASAP
If you start saving as soon as possible, you can avoid the price of procrastination, which only makes us poorer. Every five years you postpone starting to save for retirement, you almost double the monthly amount necessary to reach your goal; this is the effect of compound interest. We want our money to multiply, not our centimetres. Bear in mind that it is also never too late to start saving.
5. Revise regularly
It is of utmost importance to ensure that your savings align with your retirement objectives. Circumstances change (having children, relocating, stop working, or even getting back onto the corporate ladder, etc.). Revising your budget and financial portfolio at least once a year is advisable.
Autus Private Clients (Pty) Ltd is an authorised financial services provider (FSP 4766) in terms of the Financial Advisory and Intermediary Services Act (Act No. 37 of 2002).